02909cam a22003017 4500001000700000003000500007005001700012008004100029100002000070245018900090260006600279490004200345500001900387520140400406530006101810538007201871538003601943690008501979690007302064690010002137690010002237690005602337700002002393710004202413830007702455856003802532856003702570w13631NBER20180319111837.0180319s2007 mau||||fs|||| 000 0 eng d1 aIranzo, Susana.10aMigration and Trade in a World of Technological Differencesh[electronic resource]:bTheory with an Application to Eastern-Western European Integration /cSusana Iranzo, Giovanni Peri. aCambridge, Mass.bNational Bureau of Economic Researchc2007.1 aNBER working paper seriesvno. w13631 aNovember 2007.3 aTwo prominent features of globalization in recent decades are the remarkable increase in trade and in migratory flows between industrializing and industrialized countries. Due to restrictive laws in the receiving countries and high migration costs, the increase in international migration has involved mainly highly educated workers. During the same period, technology in developed countries has become progressively more skill-biased, increasing the productivity of highly educated workers more than less educated workers. This paper extends a model of trade in differentiated goods to analyse the joint phenomena of migration and trade in a world where countries use different skill-specific technologies and workers have different skill levels (education). We calibrate the model to match the features of the Western European countries (EU-15) and the new Eastern European members of the EU. We then simulate the effects of freer trade and higher labor mobility between the two regions. Even in a free trade regime the removal of the restrictions on labor movements would benefit Europe as a whole by increasing the GNP of Eastern and Western Europe. Interestingly, we also find that the resulting skilled migration (the so-called "brain drain") from Eastern European countries would not only benefit the migrants but, through trade, could benefit the workers remaining in Eastern Europe as well. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF16 - Trade and Labor Market Interactions2Journal of Economic Literature class. 7aF22 - International Migration2Journal of Economic Literature class. 7aJ31 - Wage Level and Structure • Wage Differentials2Journal of Economic Literature class. 7aJ61 - Geographic Labor Mobility • Immigrant Workers2Journal of Economic Literature class. 7aO52 - Europe2Journal of Economic Literature class.1 aPeri, Giovanni.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w13631.4 uhttp://www.nber.org/papers/w1363141uhttp://dx.doi.org/10.3386/w13631